WALMART SOUNDS THE ALARM: Trump's trade war will hit Americans hard

Walmart sent a letter to the Trump administration about two weeks ago asking it to reconsider new tariffs on $US200 billion worth of Chinese goods.

In a letter to US Trade Representative Robert Lighthizer seen by Business Insider, the retailer reportedly said the immediate impact of the fresh tariffs “will be to raise prices on consumers and tax American business and manufacturers.”

The letter did not succeed, with the tariffs announced this past Monday.

Walmart, the largest US retailer, is sounding the alarm on President Donald Trump’s trade war, saying it is “very concerned” about the impacts the newly announced tariffs may have on American consumers.

In a letter to US Trade Representative Robert Lighthizer seen by Business Insider, the company – which employs 2.3 million people worldwide, including 1.5 million in the US – said the immediate impact of the fresh tariffs “will be to raise prices on consumers and tax American business and manufacturers.”

“As the largest retailer in the United States and a major buyer of U.S. manufactured goods, we are very concerned about the impacts these tariffs would have on our business, our customers, our suppliers and the U.S. economy as a whole,” Walmart wrote.

“For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies,” Trump said in a statement on Monday.

“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices.”

He added: “As president, it is my duty to protect the interests of working men and women, farmers, ranchers, businesses, and our country itself.”

In its letter, Walmart also warned of the ways businesses could deal with the tariffs. It is effectively a choice between increasing prices for customers or taking a hit to their profits by absorbing the increased costs themselves.

Here’s a timeline of the US-China trade war so far:

March 22: Trump announces plans to impose a 25% tariff on $US50 billion worth of Chinese goods. China announces tariffs in retaliation to the steel and aluminium duties and promises a response to the latest US announcement.

April 3: The US trade representative announces a list of Chinese goods subject to the tariffs. There is a mandatory 60-day comment period for industries to ask for exemptions from the tariffs.

April 4: China rolls out a list of more than 100 US goods worth roughly $US50 billion that are subject to retaliatory tariffs.

May 29: The White House announces that the tariffs on $US50 billion worth of Chinese goods will move forward, with the final list of goods released June 15. The move appears to wreck the nascent trade deal.

June 15: Trump rolls out the final list of goods subject to new tariffs. Chinese imports worth $US34 billion would be subject to the new 25% tariff as of July 6, with another $US16 billion worth of imports subject to the tariff at a later date.China retaliates with an equivalent set of tariffs.

August 1: Washington more than doubles the value of its tariff threats against Beijing, announcing plans to increase the size of proposed duties on $US200 billion worth of Chinese goods to 25% from 10%.

August 3: China says it will impose tariffs of various rates on another $US60 billion worth of US goods if Trump moves forward with his latest threat.

August 7: The US announces that the second tranche of tariffs, which will hit $US16 billion worth of Chinese goods, will go into effect on August 23.

August 23: The US imposes tariffs on another $US16 billion worth of Chinese goods, and Beijing responds with tariffs on $US16 billion worth of US goods.

September 7: Trump says the tranche of tariffs on $US200 billion worth of Chinese goods is coming “soon” and threatens to impose tariffs on another $US267 billion worth of Chinese goods.

September 18: China says it has “no choice” but to retaliate to the fresh tariffs “to safeguard its legitimate rights and interests.” It announces tariffs on $US60 billion worth of US goods sent to China.